Benefits and Disadvantages of Test Marketing

Good Essays
Why company do or don't of test marketing, benefit n drawback.
-Test marketing is a technique used during product development to determine how people respond to a product. Which the product and marketing program are introduced into realistic market settings.
Do: Once a product is in development, companies can embark on test marketing which involves bringing actual examples of the public. They expose the product to a selected area of the public to see how they respond. The benefits to test marketing are very effective at increasing your sales, saving you money and time. Incorporate text advertising and help your business continue to grow,also It is costly but we can create the brand image in the mind of consumer through test marketing.
Don't: The first drawback is trade secrets; you can avoid trade secrets by conducting small-scale test marketing with tense privacy requirements. The second drawback is invalid onclusions; you can avoid this by doing the tests in many, but different places. The third major disadvantage is the cost; the best way to avoid this is by reducing some expenses, which are not very important.
Also there are two sides of test marketing,it really all depends on your objectives and market situation.

Which value proposition is used to Wal-Mart?
The full positioning of a brand is called the brand’s proposition—the full mix of benefits upon which the brand is differentiated and positioned.There are five value propositions:
More for more, charging a higher price to cover the higher costs; More for the same, offering comparable quality but at a lower price; The same for less, the same benefits also at a lower price;Less for much less,offer less and cost less;More for less,the best product selection and the lowest prices.
I think More for less is best value proposition for Wal-Mart company. because The company abolish the role of the middle man and goes straight to producers.so Wal-Mart can provider low price.and is the leader in low

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